Repo'd house - advice needed

[uptomyneckinit]

Hi

 

I need some advice about my situation.

 

To cut a long story short, I was married and it didnt work out, one of the reasons was because we got into some financial grief. Ultimately this culminated in our lender, Future Mortgages, appointing TLT Solicitors to repo the property. I fought this off for three years until November last year when they decided they would repo.

 

Since then, I have heard absolutely nothing from the lender and TLT have not been playing ball until yesterday when I had to make a number of threats and they advised me that Wragge and Co are now dealing and that the house was sold for a £25k shortfall!!!!

 

What I want to know is where do I stand? It was my understanding that the lender/appointed legal rep etc had to keep me informed on what was happening and I have a right to know what they were doing to sell the property and to ensure the best price was obtained? Also, there was a vast amount of property in the house which no one has told me what I can do about.

 

I should point out that at the time of the repo I was living 130 miles away due to work.

 

I want to lock horns with TLT, Future and Wragge and Co, the latter are the only ones who seem to have the ability to respond to correspondence so any help gratefully gratefully received

 

Thanks in advance

 

Regards

 

 

 

Richard

[caro]

I've moved your thread to the Repossessions forum.

 

When was the repossession order? Have the bailiffs enforced the eviction order? Do you think everything was done to obtain the best price possible?

 

The more information you can provide the easier it will be for those with experience in this area to advise you.

[uptomyneckinit]

Hi

 

To clarify, the property was repo'd n November 2008 by the balliffs. Since then, despite giving TLT a postal address, email addresses and phone numbers, I have HEARD NOTHING until this week when I was advised the property was sold

 

Help

[uptomyneckinit]

please any advice gratefully received!

[Ell-enn]

Hi there, sorry to hear of your situation. When a repossessed property is sold the lender has to show that every care was taken to ensure that the property was valued and marketed to ensure the best price possible.

 

This is taken from the Council of Mortgage Lenders recommendations regarding sale of property after repossession:

 

Sale of Properties in Possession

18. When selling properties which have been taken into possession lenders are under a duty to obtain the best price reasonably obtainable. A lender is not bound to postpone the sale in the hope of obtaining a better price at some future date; however, the lender should allow sufficient time to permit, for example, proper advertising so that the best price obtainable may be achieved. Mortgage lenders generally use the following administrative procedures for selling properties which have been taken into possession.

Administration

(a) The sale may be dealt with either via a lender's in-house department or through a separate property management company employed by the mortgage lender. Dedicated staff are responsible for co-ordinating the sale of properties in possession which will include reviewing the offers received from potential purchasers as well as monitoring the condition of these properties and their valuation.

Valuation

(b) A valuation of the property is obtained from either one or two qualified surveyors and another from the appointed estate agent. Prices will be reviewed regularly based on local circumstances.

Estate Agents

© Properties are usually marketed through an estate agent in the immediate locality of the property being sold. Agents may advertise properties in the local press, with such advertisements being repeated as and when necessary. Mail shots and national advertising may also be carried out in some cases. In general, lenders do not market these properties as "repossessed properties" and estate agents may be specifically instructed not to do so.

Report on Activity

(d) Estate agents are usually required to report regularly on activity if a property remains unsold. The estate agent will notify a mortgage lender of offers received. Only when satisfied that the best price has been obtained, would the estate agent recommend this offer for acceptance. If the offer is substantially below the asking price, the agent must provide supporting evidence to suggest that this would be the best offer obtained. In practice, all offers are accepted or declined promptly. Where there are a number of very close offers on a property, a sealed bid procedure may be carried out whereby

8

the person putting forward the best offer would be the successful buyer.

Visits to the Property

(e) The agent will usually visit the property on a regular basis and ensure that any necessary repairs and maintenance to the property are carried out and that the property is secure. When properties are first put up for sale, mortgage lenders will usually arrange that essential repairs, cleaning and tidying of the garden are carried out. Whilst the estate agent will take care of minor repairs which are identified on the regular visits, other repairs usually require the approval of the mortgage lender. Where this work is carried out, estate agents will be required to obtain competitive estimates. Prospective purchasers will normally be accompanied by the agent when viewing a property.

Auction

(f) Properties in possession may be sold via auction. These properties are reviewed relative to sales experience and the length of time on the market. There are occasions when properties may be sold by auction because either the auction is specifically targeted at the type of property in question, eg a period type of residence, or the property will generally appeal to the speculator market because of its condition. Such properties are referred to an appropriate auctioneer. A catalogue would be issued and the properties are available for viewing.

Indemnity Insurance

20. Mortgage indemnity is insurance which a lender may take out for its protection where a high percentage loan is made. This insurance policy covers the situation where, at some future stage, the lender has to repossess the property and sell it and the lender suffers a loss. For example, if the property is sold for less than the amount of the borrower's outstanding mortgage (including accrued interest and costs) the lender can claim on the mortgage indemnity to recover some or all of its loss. The basic security for the mortgage is the property. The mortgage indemnity, therefore, acts as a form of additional security for the lender. It provides no protection to the borrower who gains no benefit, other than a higher loan advance than would otherwise have been granted.

21. In most cases, the mortgage indemnity will cover the lender only for part of its loss and, in addition, once an insurer has paid a mortgage indemnity claim, it gains the right of subrogation; this means that the insurer can reclaim from the borrower any money it has paid to the lender under the mortgage indemnity claim. Either the lender or its insurer may take legal action against the borrower to recover the shortfall if the borrower does not repay it voluntarily. In most cases, the lender contacts the borrower to recover the shortfall on behalf of itself and its insurer. This does not mean that the lender recovers the loss twice; any money paid by the insurer which is subsequently recovered by the lender from the borrower is then passed back to the insurer.

Debt Following Mortgage Possession

9

What happens to a mortgage debt after a home is repossessed?

22.

After a lender takes a property into possession, interest will generally continue to

be charged on the mortgage loan until the property is sold. There will also be other costs charged to the mortgage account, including the estate agent’s costs in selling the property and legal costs.

23.

The lender has a legal duty to sell the property for the best price that can reasonably be obtained. If this results in a surplus after all the money owed to the lender and any other party with a registered legal interest has been repaid, then this surplus is returned to the former borrower. The lender will send the borrower a detailed final statement of the account and advise the borrower of the date on which the property was sold. This statement will be sent to the borrower’s last known address. The borrower would be able to raise any queries on the statement with the lender.

24.

But if the sale proceeds are not enough to pay off the money owing to the lender, the borrower faces a “shortfall debt”, which they still owe to the lender after possession.

What will the lender do if there is a shortfall debt?

25.

The action that the lender will take depends on the circumstances. Usually, the lender will contact the borrower as soon as possible after the sale of the property and give a final statement of the mortgage account. This will show the level of debt still owing to the lender. It is important that borrowers keep lenders informed of their addresses after possession so that they receive this information.

26.

If there is a shortfall debt, the lender may:

• immediately invite the borrower to contact them with their proposals to discuss how they might repay the debt; or

• try to give the borrower some time to get back on their feet financially before contacting them about repaying the debt.

How long after the repossession can lenders seek the recovery of the debt?

27.

In England, Wales and Northern Ireland, a lender legally has 12 years in which to contact the borrower to begin the process of obtaining repayment of shortfall debt; this period is usually 5 years in Scotland.

28.

However, lenders are committed to fair and sympathetic treatment of people who have suffered the unavoidable loss of their home, and accept that individuals should not face long delays before lenders contact them to discuss repayment of the shortfall. In practice, where a forwarding address is known, most lenders will contact borrowers fairly soon after possession has occurred with a view to agreeing a manageable arrangement for repaying all or some of the debt.

 

You need to check that all the recommendations have been met by your lender. If they take you to court for any shortfall you will need to show the court that the sale of the property has been conducted to your disadvantage.

 

The first step would be to send a Subject Access Request so that you get all the information they have regarding the sale. Make sure you send it by recorded delivery! and keep a copy together with the receipt and proof of delivery from Royalmail website.

 

Ell-enn

[uptomyneckinit]

I have had the attached response from Wragge and Co who sold the property. Tells me nothing at all. What do I do now? I want to enter into battle over this

Edited May 26, 2009 by Ell-enn
Attachment removed - personal information visible

[caro]

You need to contact TLT it seems.

[uptomyneckinit]

ha ha they dont want to know

[Ell-enn]

Hi, have you sent a subject access request to Future Mortgages?

[spamheed]

I have had the attached response from Wragge and Co who sold the property. Tells me nothing at all. What do I do now? I want to enter into battle over this

 

I might point ou that the attachment still shows personal information re email and postal addresses etc. It would be advisable to remove or black out this information - these "People" have been known to look through these forums and would be able to identify you from such information

[Ell-enn]

Hi, I've removed your attachment as it has personal information which may make you identifiable. You need to blank out the names and any other personal info before re-attaching.

[uptomyneckinit]

Hi that was a bit of a fail really! I will be sending a subject access request but Wragge and Co dont want to know and I have very nearly come to blows with TLT

[Ell-enn]

Hi, you can't really go any further until you get the SAR information back from Future as that should contain everything you need to proceed.

[uptomyneckinit]

I have now received the following response from TLT:

 

Dear Sir,

We are in receipt of your email together with the enclosure. As we have previously stated our involvement in the matter of 24 Davits Drive ended when possession was obtained in November of last year. Thereafter the marketing and sale of the property would have been undertaken by the lender without any reference to us. We did not pass on any information to Wragge and Co as we did not know they were instructed in the sale, and there was no obligation on us to find this information out. We only made enquiries to enable us to respond to your request for information as to the status of the sale of the property. We did this purely to assist you, there was no obligation on us to make these further enquiries. By this time it appears that the property had already been sold. We were not under any duty to forward your contact details to Wragge and Co and did not do so, and in any event as they say they were under no obligation to correspond with you regarding the sale.

Yours Faithfully

 

I have also received the following response from Wragge and Co:

 

Dear Mr G

This is firstly to confirm receipt of your e-mails of 22 and 26 May in this matter. I respond as follows:[/font]

Specifically in response to your e-mail of 22 May timed at 15:32, I can only repeat that this firm had not been provided with your contact details

Please supply me with the evidence upon which you rely to assert that the sale price was considerably lower than the property's market value. Meanwhile, both this firm and the company are well aware of their obligations to obtain the best price reasonably obtainable in prevailing market conditions

]- I have advised you of the price at which the property was sold, and also the completion date;[/font]

 

There is nothing I can add to what I have already said regarding the personal items that you allege were in the property. In any event, the allegation you make here is directed at TLT rather than this firm and you will therefore appreciate that I cannot comment upon it.[/font]

 

So far as your final paragraph is concerned, I am taking instructions upon your escalation point. Meanwhile, by reference to our exchanges of e-mail to date, I would ask you to clarify what complaint or complaints you wish to make so that these can be properly considered. Finally, you should direct any Data Protection Act Subject Access Request to me in the first instance. [/font]

]

[Yours sincerely[/font]

Edited May 27, 2009 by uptomyneckinit
rubbish cut and paste

[uptomyneckinit]

so the update on this is that the solicitors state that they didnt need to keep me informed and didnt need to tell me anything about the sale which was in their opinion a fair price

[Ell-enn]

Have you subject accessed Future yet?

[uptomyneckinit]

yup this has been done and the clock is ticking